Update: This article was last updated on 27th July 2020 to reflect the accuracy and up-to-date information on the page.
Investment is a very tricky game. The odds are very inconsistent, and more often than not, an investor ends up losing a lot of money instead of gaining any. A keen eye for opportunities and useful insight for market predictions can help an individual make a good investment.
However, both these qualities can only be developed from experience. An inexperienced person does not have much of a chance of making big money out of investment without a lot of luck.
However, with a little zeal and some careful planning, even the newcomers can become successful. They need to expand their insight and be a little wary when making financial decisions. What may seem a lucrative venture at first, might turn out to become a total disaster.
This is why patience is the first virtue anybody wanting to invest should develop in themselves. Besides this, there are many other vital factors one should be aware of before making big money decisions.
Accepting your shortcomings and working to overcome them is the first step to being successful in any field. Thus, newcomers should accept their inexperience and make up for lack of hands-on knowledge by getting to know the market trends from previous years.
Here is an infographic that gives 16 useful investment tips that all beginners should follow:
1) Pay off your debts before planning any investment.
2) Read thoroughly regarding the investment you are making.
3) Have some funds reserved for an emergency scenario in the future.
4) Find out your current expenses to easily plan future investments.
5) Consider all the factors, and set some investment goals.
6) Stay updated regarding the global economy and market trends.
7) Make sure that the investment amount deducts automatically.
9) Never borrow money or take a loan to make an investment.
10) Make sure you are earning more than the amount you’re spending on the investment.
11) Be aware of where the money is spent and earned from while the investment is going.
12) Never put all your eggs in one basket i.e., never put all your money in a single investment.
13) Don’t trust financial media blindly for any suggestions.
14) Don’t anticipate what you will earn or lose in the investment.
15) Don’t think emotionally while deciding on the investment.
16) Never sell the complete investment during a panic situation.
Have some more investment tips for beginners? Tell us in the comment section below.